Presentation on theme: "Using Approvals Management Engine (AME) for Requisitions in R12"— Presentation transcript:
1 Using Approvals Management Engine (AME) for Requisitions in R12 Presented byAndrew Mikulak and Gary Marines
2 Agenda Introductions ATC Background ATC Requirements Standard requisition approvalsOverview of AMEExamplesOther AME factsQ&A
3 Andrew Mikulak Senior Buyer with American Transmission Company 10 years procurement experience within manufacturing and energy utility industriesContact information:
4 Gary Marines Procurement applications consultant with O2Works 10 years procurement process and application experience within telecom, retail, and energy utility industriesContact information:
5 American Transmission Company –Background First multi-state transmission-only utility9,350 Circuit miles of transmission line$2.2 Billion in total Assets$1.7 Billion investment since 2001Began operations Jan. 1, 2001, as the first multi-state transmission-only utilityHeadquartered in Pewaukee WI500 employees working in Wisconsin, Michigan and Washington, DCAssets9,350 circuit miles of transmission line500 substations (wholly or jointly owned)$2.2 billion in total assetsOperationsTwo system operation centersService area includes portions of Wisconsin, Michigan, Minnesota and IllinoisConstruction Program$1.7 billion investment since 2001Upgraded more than 1,200 miles of linesBuilt 30 new lines (327 miles); 12 new substationsImproved 103 substations
6 American Transmission Company – Requirements Expenditure Authorization PolicyBidding and Contracting PolicyLegal Review PolicySecurity Processing (Future)Expenditure Authorizations Policy – Example: Construction Projects – PM’s $100K; PM Leads $250K; General Managers $500K and up….Bidding and Contracting Policy – difficult to audit compliancy to the policy. Was a separate manual process outside the purchasing transaction and could be easy overlooked by buyers.Legal Review – Projects exceeding $250K required Legal Review to reduce contractual risk to ATCSecurity Processing – Future process of potentially inputting Security in the approval/review process of contractor on-boarding. Regulated by NERC (North American Energy Regulatory Commission)
7 Standard Requisition Approval Process Position hierarchyEmployee - SupervisorDirect or Hierarchical RoutingInclude and Exclude amounts for various attributes such as document totals and account ranges.Position hierarchy: relatively large amount of overhead with maintaining all of the positions. Must change every time there is an organizational change.Employee supervisor relationship…give each job an approval amount one time. Make sure each employee has a job assignment.
8 Standard Requisition Approval Process There are many ways that the standard approval methods can support your organization.Need more? Modify workflow.Administrational overhead with maintaining a position hierarchy if your organization changes often.Position hierarchy: relatively large amount of overhead with maintaining all of the positions. Must change every time there is an organizational change.Employee supervisor relationship…give each job an approval amount one time. Make sure each employee has a job assignment.
9 What is the Approvals Management Engine (AME)? A common way for Oracle to manage approvals for it’s applications.AME has a self-service business analyst dashboard to perform maintenance.Uses business specific rules to manage the approvals required for a specific type of transaction
11 Approval RulesBusiness rule that determines the approval process used by a transaction.Rules are constructed by Conditions and Actions.Example:If requisition amount > $250, USD (condition), THEN require post-chain-of-authority approval (action) from the Legal Team (approval group).
12 Approval Rules If requisition amount > $250,000.00 USD, THEN use post-chain-of-authority approval to add the approval group of Legal teamconditionaction
14 Transaction TypeRepresents “Which” type of application transaction type will have a set of distinct rules applied to it.Types of Transaction Types:Requisition ApprovalRequisition Change ApprovalWork ConfirmationSupplier Registration Approval
15 AttributesBusiness variables that have a single outcome for a transaction:Transaction amountPurchasing CategoryCost CenterItem NumberAttributes are used in conditions to provide one piece of the rule.Create attributes that do not come seeded
16 Conditions Tells us what is true or false about a transaction. If X is true, then do Y.Two types of conditionsOrdinaryEvaluates dates, numbers, currencies.List-Modifierchecks for a given approver.
17 Action TypesAn action type is an instruction to AME to modify a transaction's approval process in the manner you specify.
18 Available Action Types Available Action Types Are:Chain of Authority – Uses HR supervisory or HR position hierarchies.List ModificationSubstitutionPre Approval GroupPost Approval Group
19 Approval GroupsWhen using pre- or post- list approval group action types you will have to create an Approval groupAn approver group can either be an ordered set of one or more approvers (persons and/or user accounts) or it can be a list, which is dynamically generated at rule evaluation time.
20 Approval GroupsAre typically created to support non-financial approvals such as:Legal ReviewGate Keeper for specific commoditiesEngineeringProject ManagementThis means in addition to the approval list that was automatically built based on financial constraints (emp/supervisor hierarchy)
21 Example 1- Simple Business Rule At a local electric transmission company all requisition transactions over $250, Require the approval of a legal representativeThe legal team should be notified after the initial financial approval list has reviewed and approved the requisitionFirst team member to respond provides the approval
22 Example 1 If requisition amount > $250,000.00 USD, THEN use post-chain-of-authority approval to add the approval group of Legal teamconditionaction
37 Example 3 – Complex Business Rule At a construction company where the project teams can be rather large, special conditions for requisition approval can existWhenever a requisition is created utilizing a project type of construction, do the following:Make the project manager the first approverFollow the project manager’s employee/supervisor hierarchy rather than the preparer’s.
38 Example 3Ifrequisition includes a project with a type of “PM” for the approval pathTHENChange the first approver in the list to the project manager of the project and follow their approval pathconditionaction
43 Example 3 – Other Set UpFlexfield on Project Type information to indicate if it is a “PM” pathSet up job levels on each job in HR
44 Example 3 - Outcome Preparer = Gary Marines Requester = Gary Marines Project Manager = Duane Schoon
45 What else does AME do? Parallel approvals FYI notifications List-Creation ExceptionIf invoice amount > $500 USD and pay group = Employee, THEN require approval two job levels above requestor.List-ModificationIf any approver = Sam Clark, THEN grant final authority.
46 What else does AME do? Conflict Resolution An approver will only be required to take action once if they are repeated for some reasonIf chain-of-authority and pre or post approval rule include the same person, chain-of-authority wins.If pre and post rules include the same person, pre wins.
47 What else does AME do? Much More! We have just skimmed the surface today